Axa Investment Managers has reported nearly €50bn (£44bn) in outflows from its joint venture businesses, but has bucked the withdrawals with strong performance in its specialist products.
In a note, the asset manager, part of the French Axa Group, says the decline in inflows was to be partly driven by a number of products reaching maturity and not being replaced due to new regulatory requirements relating to its Chinese joint venture.
However, the company said the outflows have had “a very limited financial impact” on the business.
Despite the large outflows, Axa IM saw third party net new money inflows of €9.3bn between 2016 and 2017, helped by a “strong performance” of alternatives, specialist fixed income and multi-asset products.
As a result, AXA IM says it is looking to add new funds to its fixed income strategy with a move to higher yielding assets and “more flexible solutions”.
It says it will push for more total return credit products as an alternative to passive investments.
Overall, assets under management at the asset manager increased to €746bn as of January, up from €717 a year ago. Revenues net of fees were €1.2bn, an increase of 6 per cent from 2016.
AXA IM chief executive officer Andrea Rossi says the institutional business was the most successful of 2017, but the group was making “advances” in the retail space.
He says: “Our expertise and capabilities as an active manager provide us with a crucial advantage in navigating today’s challenging markets and capturing the evolving opportunities driven by global megatrends.”